Payroll Tax Liability Payment Options

Failure to Pay Payroll Taxes on Time When a business fails to pay the payroll taxes on time, penalties and interest start to accrue. This causes additional cash flow problems for the business when cash is such an important commodity.

Late Filing of Payroll Returns If the payroll returns are not filed on time the penalties are substantially increased. Failure to file a return on time can incur penalties of 5% per month to a maximum of 25%. Add that to other penalties, along with the compounded interest and you can have a very serious tax problem.

Payment Options Taxpayers who are unable to pay in full generally have three options to settle their debts with the federal or state taxation authorities. These liabilities are resolved primarily in the same manner on the federal or state levels; however, there are a number of nuances that you should be made aware of. Please contact our San Diego office to speak with our attorneys and staff for help and more information on each of these options.

1) Currently Non-Collectible Status: For certain taxpayers facing economic hardship and with little future collections potential, the federal and state tax agencies are able to suspend collection activity in certain circumstances. The program is not heavily advertised by the federal or state tax agencies and is considered a last resort when no other viable options appear readily available. Currently Non-Collectible status is difficult to obtain and requires an experienced advisor to guide you through the process and to negotiate with the government. Please contact our office if you are interested in obtaining non-collectible status.

2) Offer in Compromise: This program authorizes federal or state tax agencies to settle liabilities for less than the full amount owed. In order to qualify for the Offer in Compromise program your business must no longer be in operation and be inactive. In rare circumstances, the federal or state tax agencies will accept an Offer in Compromise if the taxpayer no longer has an association or controlling interest in the entity that incurred the liability. Further restrictions to the program apply such as having no saleable assets or the future earning potential to settle the liability and not being able to pay more than the accumulating interest on an annual basis. Furthermore, the program will only apply to liabilities that are not in dispute and not the result of fraudulent activity.

3) Installment Agreement: These arrangements allow the taxpayer to pay a liability over a fixed period of time. In the interim, the federal or state tax agencies will cease all collection action, including levies garnishments, as long as the taxpayer does not accrue additional liability and makes all of their required filings and payments. However, interest and late payment penalties will continue to accrue on the remainder of the balance and the government may file a federal or state tax lien until the liability is satisfied.

Installment agreements are a convenient method to utilize future cash flow and to pay off liabilities over a fixed period of time. However, the government will only grant them as a last resort, and will want taxpayers to sell, borrow against their assets, and exhaust potential lines of credit before considering an installment agreement. The government’s stringent standards may be unworkable for individuals or they may refuse to grant them entirely, even to cash-strapped taxpayers or those facing insolvency.

An experienced tax attorney can help guide you through the installment agreement process and get the results that work best for you. Whether your goal is to pay the tax as quickly as possible to minimize the accruing interest and penalties, or to negotiate a minimum monthly payment to increase your financial flexibility, we can help. Furthermore, we can help roll your current compliance into your monthly installment payments, help stall collection actions, or help deal with difficult or inflexible government personnel.

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Testimonials

Compassionate. Knowledgeable. Capable. The team at RJS, specifically Brad, Marisol and Ronnie were on top of all of our issues. They were efficient and communicated with us on every step. Finding a team that is on top of their game like RJS is a tough find.... add to that the compassion and care they provide makes them second to none. Call them now. - Mike G.

RJS Law firm was very professional and someone was always available to answer our questions. They really looked out for our interest only! If you want the best Law Firm Representing YOU, These guys are absolutely SECOND TO NONE!!! I highly recommend them! Thank you for solving my tax problems! You guys Rock!- Mike S.

Amazing! In today's world of NO customer service and only internal focus, The RJS Law firm and Chandara in particular completely changed my perspective. Due to a complicated personal situation, I found myself in a difficult position with the IRS. One call and I can not tell you how relieved I am. I can breathe again, and what is even more amazing- I do not need an attorney. Chandara advised me on how to resolve this myself. It would have been easy to just take my money and add further stress to the situation, but she didn't. I believe that nothing but good can come from true acts of kindness, so I truly thank her and RJS for outstanding service and should I ever need an attorney- she will be my first call.- Michele W.

Calling this firm put me at ease. I had sleepless nights as I was procrastinating to take care of my problems; I didn’t know how to go about them. Seeking legal help is always a good way to go, as they are more suited for the job. Chandara has guided me through the process of my stressful situation. No strings attached but I couldn’t let go, I truly recommend them. They will give you sincere and honest answers at all times. I couldn’t be more at ease with my family taking this a step at a time.- Kimberly

I have been a tax client of RJS Law for nearly 10 years. Mr. Shamoun and his team have always delivered results above and beyond my expectations. My attorney has always been just a phone call away when I need advice. I would highly recommend RJS Law to anyone in need of representation for tax related matters! - Brad

My grandmother and I called RJS LAW because she fell behind on her business taxes. She no longer owns the business so she wanted to get back on track and settle that debt. Brendan was very informative and very helpful. We set up a consultation and everyone at the firm was very polite. Brendan helped us create a plan so that we can get resolution to the problem. He helped turn this insurmountable issue into something manageable going forward. I highly recommend this place!- Deana

With no doubt I have to say I have the best advice going forward. I was in the military residing from California but I was stationed in Texas and I didn’t know my filing requirements. Not only I got my questions answered by they gave me free knowledge that I wouldn’t ever had known. I feel comfortable with filing now and going forward I will know what’s best for me. The best thing I liked about this firm is that they answered right away! Transferred my call to an attorney and got it done! In no time! Highly professional and helpful!- Karla

We worked with Brad Paladini on an appeal for an Offer in Compromise we previously submitted on our own. Looking back we should have hired RJS BEFORE we tried submitting an OIC on our own. Brad was amazing to work with on the OIC appeal and literally saved us over $100,000 in taxes. Didn’t show any judgement, took over all the IRS communications and helped us get all the paperwork the IRS was requesting. He fought for us like a bulldog to win the appeal. We are so thankful we found RJS LAW through Yelp and decided to write a review to pay it forward!- Holly

RJS LAW San Diego came to us highly recommended. The firm delivers with precision, tact and professionalism. They are not cheap, but cheap doesn’t always deliver. Ronnie Shamoun, Quinn Disparte, and their associates treated our case with respect, dignity, empathy and speed. They were able to get our case dismissed timely, as promised and without any of the associated headaches that normally come with the territory. The end result was tremendous peace of mind. If that is what your ultimate goal is you need not look any further.- Mandana